Banca Ifis SPA (IF) AI Stock Analysis

• Market Cap: €1.65B
• Dividend Yield: 8.44%
• Average Volume (3M): 145.18K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.94
• Revenue Growth: -3.63%
• EPS Growth: -5.12%
• Country: IT
• Employees: 2,013
• Sector: General
• Sector Strength: N/A
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 61,540,455
• 10 Day Avg. Volume: 166,734
• 30 Day Avg. Volume: 145,175
• PEG Ratio: 7.00
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -4.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €30.00 ▲(15.65% Upside)

Banca Ifis SPA's overall stock score is driven by its attractive valuation and strong dividend yield, which are significant positives. However, financial risks from increasing leverage and negative cash flow trends, along with technical indicators suggesting the stock is overbought, temper the score.

Positive Factors

SME-focused business model

A clear strategic focus on SME lending, factoring and NPL management creates durable niche expertise and client relationships. Recurring interest and fee income from factoring and loan servicing supports steady cash generation and positions the bank as a specialized counterparty to SMEs over the medium term.

Consistent revenue expansion (2020-2024)

Sustained revenue growth over multiple years signals expanding client adoption and product penetration. That top-line increase can drive operating leverage, support stable margins and provide a foundation for reinvestment in lending capabilities and servicing infrastructure across cycles.

Improving return on equity

A material ROE improvement reflects stronger profitability and more efficient capital use. Higher ROE enhances the bank's ability to retain earnings, fund growth or pay dividends, increasing resilience to credit stress and improving long-term shareholder returns if maintained.

Negative Factors

Rising leverage

A significant rise in debt-to-equity increases funding and refinancing risk, making the bank more sensitive to interest rate and liquidity shocks. For a regional lender focused on SME credit, higher leverage reduces flexibility to absorb loan losses and constrains capital deployment over the medium term.

Weak cash flow generation

Negative operating and free cash flow undermine the bank's internal funding for loan origination, NPL acquisitions and operational needs. Persistent cash conversion weakness can force reliance on external funding, increasing liquidity cost and vulnerability during market stress over the next several quarters.

Recent revenue and EPS headwinds

Negative recent revenue and EPS growth indicate near-term pressure on core earnings and potential margin compression. If these trends reflect weaker credit demand or rising provisions, they could persistently reduce internal capital generation and limit strategic initiatives over a multi-quarter horizon.

Banca Ifis SPA Business Overview & Revenue Model

Company Description

Banca IFIS S.p.A. provides credit services and solutions for enterprises. It engages in the purchase/management of non-performing loan portfolios. It offers factoring, advisory and equity investment, structured finance, leasing, and long-term financing for industrial investments. The company was founded in 1983 and is based in Mestre, Italy. Banca IFIS S.p.A. is a subsidiary of La Scogliera S.p.A.

How the Company Makes Money

Banca Ifis generates revenue primarily through interest income from its lending activities, particularly in factoring and corporate loans. The bank charges interest on the funds it provides to SMEs, which constitutes a significant portion of its income. Additionally, Banca Ifis earns fees from the services associated with its factoring operations, including administrative fees and service charges. Another key revenue stream comes from the management and sale of non-performing loans, where the bank purchases distressed debts at a discount and aims to recover more than its acquisition cost. The bank also benefits from partnerships with various businesses and financial institutions, enhancing its client base and expanding its service offerings. Moreover, the diversification into real estate finance provides further avenues for revenue generation, particularly through mortgage lending and investment in real estate assets.

Banca Ifis SPA Financial Statement Overview

Summary

Banca Ifis SPA shows stable revenue growth and strong profit margins. However, increasing leverage and negative cash flow trends pose financial risks. The company needs to improve cash flow generation and manage debt levels to sustain financial health.

Income Statement

Banca Ifis SPA has demonstrated consistent revenue growth from €489M in 2020 to €661M in 2024, indicating a stable upward trend. The gross profit margin has remained strong at 100% due to the nature of banking operations. EBIT margins have been stable, maintaining around 40%, which reflects efficient operational management. However, the absence of EBITDA data for 2024 limits further analysis on operating profitability.

Balance Sheet

The company's debt-to-equity ratio increased from 1.44 in 2020 to 2.23 in 2024, indicating higher leverage which could pose financial risks. The equity ratio has slightly declined, suggesting decreasing asset financing by equity. Despite these concerns, return on equity has improved from 4.52% in 2020 to 9.33% in 2024, showing enhanced profitability relative to shareholder equity.

Cash Flow

The free cash flow has shown volatility, with a significant drop to a negative figure in 2024. Operating cash flow was also negative in 2024, which presents a potential liquidity concern. The free cash flow to net income ratio turned negative, indicating inefficiencies in converting earnings into cash flow. This could be a risk if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.04B	941.90M	683.73M	621.62M	596.71M
Gross Profit	1.02B	607.08M	598.84M	569.49M	507.47M	489.00M
EBITDA	254.73M	268.60M	255.14M	228.71M	167.77M	109.54M
Net Income	155.08M	161.58M	160.11M	141.09M	100.58M	68.80M
Balance Sheet
Total Assets	13.96B	13.83B	14.05B	13.26B	12.98B	12.03B
Cash, Cash Equivalents and Short-Term Investments	409.63M	579.01M	883.83M	610.36M	708.57M	986.58M
Total Debt	2.87B	3.67B	5.17B	2.74B	2.62B	2.20B
Total Liabilities	12.16B	12.08B	12.36B	11.66B	11.35B	10.48B
Stockholders Equity	1.78B	1.73B	1.68B	1.59B	1.60B	1.52B
Cash Flow
Free Cash Flow	0.00	-223.72M	400.73M	382.38M	52.79M	158.29M
Operating Cash Flow	0.00	-191.52M	445.41M	399.95M	73.42M	205.30M
Investing Cash Flow	0.00	-50.66M	-105.85M	-17.51M	73.54M	10.32M
Financing Cash Flow	0.00	-110.34M	-85.16M	-134.69M	-83.18M	-5.00K

Banca Ifis SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IF, the sentiment is Positive. The current price of 25.94 is below the 20-day moving average (MA) of 26.53, above the 50-day MA of 25.45, and above the 200-day MA of 22.58, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 67.14 is Neutral, neither overbought nor oversold. The STOCH value of 92.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:IF.

Banca Ifis SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CE	73 Outperform	€5.27B	8.12	14.69%	6.23%	-7.81%	4.89%
IF	71 Outperform	€1.65B	9.25	8.85%	8.44%	-3.63%	-5.12%
PRO	64 Neutral	€117.09M	10.29	7.01%	7.69%	-12.26%	31.82%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DOV	54 Neutral	€496.13M	-30.78	-12.79%	―	22.48%	69.78%
BDB	53 Neutral	€1.23B	10.46	7.87%	4.86%	-5.81%	-11.05%